“[The] reality is that Elan is a very unique and compelling asset with high barriers to entry, attractive margins and analogous to Perrigo’s core business,” Joseph Papa, Perrigo’s chairman and chief executive, said in a conference call to analysts. “This transaction give us optionality within both our international platform and the optionality of product diversification. Today, together with Elan, truly one-plus-one is at least 3.”

But some on Wall Street questioned the value of the deal and wondered why Perrigo, a consumer health-care specialist would venture into the world of speculative pharmaceuticals with Elan.

“We view the deal favorably long-term as an opportunity to enhance international expansion platform via [an] Irish domicile, but at 23 times [adjusted 2015 earnings], the acquisition looks expensive,” unless Perrigo can offer some reassurance that there is other upside, Leerink Swann analyst Jason Gerberry said in a note to clients.

Others said this is probably the best deal Elan is going to get, now that it’s sold off its major asset, Tysabri.

“Elan has approximately $215 million in expenses but we think the vast majority of this should go away if new company eliminates most back-office administrative and overhead R&D expenses,” RBC Capital Markets’ Michael Yee said in his note.

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